What was the primary driver of Deere & Company's revenue growth in the reported period?

The primary drivers of Deere & Company's revenue growth were increased shipment volumes and improved price realization across its key segments, particularly Agriculture and Turf and Construction and Forestry. Favorable foreign currency translation also contributed to the reported sales increases.

How did the Financial Services segment perform, and what were the key factors influencing its results?

The Financial Services segment reported higher net income, primarily driven by growth in its credit portfolio and a lower provision for credit losses. However, financing spreads narrowed, partially offsetting the positive impacts. The segment's operating profit increased by 31% in the third quarter.

What are the company's expectations for the remainder of the fiscal year, and what challenges does it foresee?

Deere & Company anticipates its equipment sales to increase by approximately 25% for the full fiscal year 2011 and projects net income attributable to the company to be around $2,700 million. Potential challenges include uncertainty in the global economic recovery, the impact of sovereign debt, capital market disruptions, and the availability of credit for customers and suppliers. Rising raw material costs and stringent emissions regulations also present ongoing considerations.

What is the company's financial position regarding cash and debt?

Deere & Company maintained a solid cash position with $3,618.3 million in cash and cash equivalents at July 31, 2011. Total liabilities were $39,595.1 million, with total liabilities and stockholders' equity at $47,135.1 million. While short-term borrowings increased, the company has access to significant credit lines and diverse funding sources. The company's debt-to-capital ratios were within the covenants of its credit agreements.

DE 10-Q Quarterly Report Q3 FY2011 — Revenue, Net Income, EPS

Summary

Deere & Company (DE) reported strong financial results for the third quarter and the first nine months of fiscal year 2011, showcasing significant year-over-year growth in net sales and net income. The company's performance was driven by robust demand in its core agriculture and turf, as well as construction and forestry equipment segments, bolstered by higher shipment volumes and improved pricing. Despite some economic uncertainties and rising raw material costs, Deere's strategic investments in new products and global capacity appear to be positioning it well to meet increasing global demand for its machinery. The financial services segment also demonstrated improved profitability, attributed to portfolio growth and a lower provision for credit losses, although financing spreads narrowed. The company maintained a positive outlook, forecasting further sales growth for the full year and expecting net income to reach approximately $2,700 million, indicating a confident stance despite potential headwinds from global economic volatility and capital market disruptions. Investors can take comfort from the company's solid operational execution and strategic positioning for future growth.

Financial Highlights

43 data points

Beta

Revenue

$8.37B

0.2% Gross Margin

Net Income

$712.00M

0.1% Net Margin

EPS (Diluted)

$1.69

Total Assets

$47.14B

Cash & Equivalents

$3.62B

Free Cash Flow

$1.06B

Financial Statements

Beta

Revenue	$8.37B
Cost of Revenue	$5.79B
Gross Profit	$1.93B
R&D Expenses	$312.00M
SG&A Expenses	$815.80M
Operating Income	$1.16B
Interest Expense	$184.30M
Net Income	$712.00M
EPS (Basic)	$1.71
EPS (Diluted)	$1.69
Shares Outstanding (Basic)	417.40M
Shares Outstanding (Diluted)	422.00M

Key Highlights

1Net sales and revenues increased significantly by 22% for the third quarter and 24% for the first nine months of fiscal year 2011 compared to the prior year periods, driven by strong performance in Agriculture and Turf and Construction and Forestry segments.
2Net income attributable to Deere & Company surged by 15% for the third quarter and 51% for the first nine months of fiscal year 2011, reflecting improved operational efficiency and higher sales volumes.
3The Agriculture and Turf segment saw a 22% increase in sales for the third quarter and a 23% increase for the nine months, driven by higher shipment volumes and improved price realization.
4The Construction and Forestry segment experienced substantial growth with sales up 34% for the third quarter and 50% for the nine months, attributed to higher shipment volumes and improved pricing.
5Financial Services segment reported higher net income due to portfolio growth and a lower provision for credit losses, with operating profit up 31% for the third quarter.
6The company maintained a strong cash position, although consolidated cash flows from operating activities decreased to $636 million for the nine months ended July 31, 2011, from $1,088 million in the prior year period, primarily due to increased inventories and trade receivables.
7Deere & Company provided a positive outlook, forecasting full-year net income attributable to approximately $2,700 million, signaling continued confidence in its growth trajectory.

DEERE & CO Quarterly Report for Q3 Ended Jul 31, 2011

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions